Sell alert! Why this expert is calling time on Nuix and Brainchip shares

Brainchip Holdings Ltd (ASX: BRN) shares have recouped their earlier intraday losses, trading flat at 14 cents apiece during the Wednesday lunch hour.

This sees shares in the S&P/ASX 300 Index (ASX: XKO) artificial intelligence (AI) stock down about 43% over the past 12 months.

Nuix Ltd (ASX: NXL) shares have had an even tougher year.

Shares in the ASX 300 investigative analytics and intelligence software provider are down 1% at the time of writing, changing hands for $1.53 each. This puts the Nuix share price down 53.5% over 12 months.

For some context, the ASX 300 has gained 9.9% since this time last year.

And if Peak Asset Management’s Niv Dagan has it right, Nuix and Brainchip shares could have further to fall (courtesy of The Bull).

Time to sell Brainchip shares?

“Brainchip is a commercial producer of neuromorphic artificial intelligence (AI),” said Dagan, who has a sell recommendation on Brainchip shares.

If you’re not familiar with what that means, the company’s neuromorphic processor, Akida, is intended to mimic the human brain and keep machine learning local to the chip, independent of the cloud.

“The company operates across Australia, the US and Europe and had a market capitalisation of about $349.17 million during trading on March 12,” Dagan said.

Explaining his sell recommendation, Dagan said:

The broader AI hardware landscape is increasingly dominated by big players, such as Nvidia. The AI sector is intensively competitive. The company substantially lifted revenue in full year 2025 but reported a loss from continuing operations after tax.

Full-year revenue of US$1.9 million was up 374% from 2024. The loss from continuing operations came in at US$20.4 million.

“Brainchip shares have fallen from 24.5 cents on October 9, 2025, to trade at 14 cents on March 12. Other stocks appeal more at this stage of the cycle,” Dagan concluded.

Also on the selling block

Apart from Brainchip shares, Dagan also recommends selling Nuix.

“Nuix is an investigative analytics software provider,” he said. “It enables customers to process and search large data sets of unstructured information, including emails, documents and communications records.”

Despite the sizeable one-year losses, Nuix shares are up 12.1% since the company reported its half-year results on 23 February.

Which could make today a good day to think about taking some profits, according to Dagan. He noted:

The company earns most of its revenue from licence and maintenance fees. Revenue of $121.2 million in the first half of fiscal year 2026 was up 15.2% on the prior corresponding period. Annualised contract value of $234.4 million was up 8.4%.

Investors may want to consider taking a profit as we believe gains are priced in following the half year result. We see limited scope for upside amid increasing competition.

The post Sell alert! Why this expert is calling time on Nuix and Brainchip shares appeared first on The Motley Fool Australia.

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Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Nuix. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.